We are committed to maintaining a safe and healthy work environment for all employees and contractors.
Our operations delivered improved safety performance. The group LTIFR per 200 000 man-hours improved to 0.22 (F2023: 0.27), while the TRIFR1 improved to 0.50 (F2023: 0.62).
1 TRIFR includes the number of fatal injuries, lost time injuries and medical treatment cases.
Regrettably, there was a fatality at Bokoni Platinum Mine when Mr Thomas Ubisse, a team leader, was fatally injured in a fall-of-ground accident during the dayshift on 16 June 2024 at Middelpunt Hill shaft. Support and counselling was offered to all affected employees and Mr Ubisse’s family members through the employee assistance programme. We extend our sincere condolences to his family, friends and colleagues.
Independent root-cause investigations are underway. We continue to work towards ensuring zero harm at our operations.
Black Rock Mine reached 12 million fatality-free shifts and Modikwa Mine 3 million fatality-free shifts, which took 15 years and two years respectively to achieve. Beeshoek Mine has been fatality-free for 21 years.
In F2021, ARM set a long-term target of achieving net-zero greenhouse gas (GHG) emissions (scope 1 and 2) from mining by 2050. Building on this, in F2022 and F2023, we focused on developing decarbonisation pathways that detail the short and medium-term steps needed to achieve this long-term target. This included setting a short-term target of a 15% reduction in scope 1 and 2 emissions by 2026 and a medium-term target of a 30% reduction in scope 1 and 2 emissions by 2030 against F2023 as a baseline. We have been focusing on ways to implement these pathways and achieve our targets, including allocating capital to renewable energy and other measures, developing executive incentives to drive operational action, and developing data systems to improve the quality and efficiency of our reporting.
In F2024, we started to explore setting appropriate scope 3 targets in line with the International Council of Mining and Minerals (ICMM) 2021 climate change position statement and contribute to advancing partnerships that enable credible target setting and emission reductions across our value chains. Work is also underway to develop a climate change strategic framework that consolidates ARM’s climate-related targets, commitments and actions. This framework will formalise roles, responsibilities and implementation requirements to transition to a lower carbon, climate-resilient business.
In April 2023, a 20-year power purchase agreement (PPA) was concluded with SOLA Group and financial close was reached for wheeling 100MW of solar PV power to ARM Platinum’s mining operations. Construction of the solar PV facility is on schedule, with 100MW of power expected to be delivered by August 2025.
Eskom has completed construction of a new 132kV transmission line to meet increased electricity requirements associated with the Two Rivers Merensky project. This investment in network infrastructure would further contribute to the potential for wheeling renewable power to the mine.
At the ARM Ferrous Northern Cape mining operations, performance challenges and the resultant termination of a consultant’s services delayed the definitive feasibility study (DFS) to explore the correct energy mix for the mines that will cater to baseload demand. A new service provider has been appointed to conduct the DFS, which will also explore the best options between outright ownership and buying power from independent power producers. This will be completed by December 2024.
Water supply to Khumani Mine remains a risk since phase 2 of the refurbishment of the Vaal Gamagara pipeline has not yet started. As a result, the mine relies on dewatering programmes of our neighbouring mines.
This challenge impacts other mines in the Northern Cape and communities as well. Accordingly, these mines are engaging with Vaal Central Water Board (VCWB) and the Department of Water and Sanitation to mitigate the risk by expediting the refurbishment project and supporting VCWB through financial assistance for day-to-day operations and maintenance of the pipeline.
Despite lower commodity prices for our key commodities, particularly PGMs and thermal coal, we maintained our robust financial position with net cash of R7 197 million at 30 June 2024 (F2023: R9 779 million). This gives ARM the flexibility to opportunistically pursue value-enhancing growth prospects.
In F2024, total value created was R12 431 million (F2023: R21 242 million restated) on a segmental basis. This was distributed to stakeholders and reinvested in our business as shown below.
| F2024 Rm |
F2023 Rm |
|
| Salaries and fringe benefits to employees | 5 106 | 4 893 |
|---|---|---|
| Taxes to government | 2 332 | 4 541 |
| Income tax | 1 608 | 3 469 |
| Royalty tax | 724 | 1 072 |
| Finance costs, dividends and non-controlling interest to capital providers | 3 003 | 8 239 |
| Dividends | 3 529 | 6 666 |
| Non-controlling interest | (850) | 1 242 |
| Finance costs | 324 | 331 |
| Total value distributed | 10 441 | 17 673 |
| Reinvested in the group | 1 990 | 3 569 |
| Amortisation | 2 373 | 2 155 |
| Reserves retained | (383) | 1 414 |
| Total value | 12 431 | 21 242 |
Headline earnings for F2024 decreased by 43% to R5 080 million or R25.91 per share (F2023: R8 983 million or R45.82 per share restated). The decline in headline earnings was mainly due to the decline in the average US dollar 6E PGM basket price and the lower thermal coal prices. This was partially offset by a weaker average rand/US dollar exchange rate and higher average realised export iron ore prices.
The average realised rand weakened by 5% versus the US dollar to R18.70/US$ compared to R17.76/US$ in F2023. For reporting purposes, the closing exchange rate at 30 June 2024 was R18.25/US$ (30 June 2023: R18.90/US$).
| F2024 Rm |
F2023* Rm |
% change | |
| ARM Ferrous | 5 058 | 5 528 | (9) |
|---|---|---|---|
| Iron ore division | 4 933 | 4 158 | 19 |
| Manganese division | 143 | 1 372 | (90) |
| Consolidation adjustment | (18) | (2) | >(200) |
| ARM Platinum | (910) | 1 465 | (162) |
| Two Rivers Mine | 168 | 1 262 | (87) |
| Modikwa Mine | (121) | 819 | (115) |
| Bokoni Mine | (566) | (406) | (39) |
| Nkomati Mine | (391) | (210) | (86) |
| ARM Coal | 391 | 1 535 | (75) |
| Goedgevonden Mine (GGV) | 331 | 540 | (39) |
| PCB operations** | 60 | 995 | (94) |
| ARM Corporate and other | 541 | 455 | 19 |
| Corporate and other (including Gold) | 762 | 651 | 17 |
| Machadodorp Works | (221) | (196) | 13 |
| Headline earnings | 5 080 | 8 983 | (43) |
* Comparative information has been restated. Refer note 15 of the condensed group financial statements for more detail.Comparative information has been restated.
** PCB refers to Participative Coal Business.
ARM Ferrous headline earnings were 9% lower at R5 058 million (F2023: R5 528 million), driven by a 90% decrease in headline earnings in the manganese division. This was partially offset by a 19% increase in headline earnings in the iron ore division.
Iron ore headline earnings include a R22 million (pre-tax) negative fair value adjustment on sales (F2023: R279 million negative adjustment). The fair value adjustment comprises a R28 million positive fair value based on confirmed prices and a R50 million negative fair value adjustment based on forward prices.
Lower headline earnings in manganese ore were mainly driven by a decrease in the average realised US dollar manganese ore prices, adjustments in sales mix arising from lower grade products being sold as well as increased railage tariffs. This was partially offset by higher sales volumes and the weaker rand/US dollar exchange rate. Lower headline earnings in manganese alloys were driven by lower sales volumes due to lower demand, a significant decrease in ferromanganese prices and an increase in provisions for onerous contracts and restoration.
Higher headline earnings in the iron ore division were driven by an increase in average realised US dollar iron ore prices, slightly higher sales volumes, as well as the weaker rand/US dollar exchange rate, partially offset by higher mining costs and higher railage expenses.
ARM Platinum headline earnings decreased 162% to a headline loss of R910 million (F2023: R1 465 million earnings).
Two Rivers Mine headline earnings reduced to R168 million (F2023: R1 262 million), which includes a negative mark-to-market adjustment of R193 million (F2023: R1 065 million negative mark-to-market adjustment). The decrease in headline earnings was mainly due to a 33% decline in the average basket price and a 17% increase in unit cash costs (on a rand per 6E PGM ounce basis). The above-inflationary increase in unit costs results from increased milling of Merensky ore. The Merensky ore arose out of the development of the Merensky shaft and came at a higher cost than UG2 ore.
Modikwa Mine reported a 115% decline in headline earnings to a headline loss of R121 million (F2023: R819 million earnings), largely driven by a 35% decrease in the average basket price. The mine’s production increased marginally, while unit cash costs (rand per 6E PGM ounce) increased by 6%.
Bokoni Mine reported a headline loss of R566 million (F2023: R406 million) driven mainly by the mine ramping up to its first PGM ounce production. The first PGMs were produced in November 2023, and unit cash costs are within the range expected from production ramp-up. Bokoni results were included for 10 months in F2023, following its acquisition on 1 September 2022, compared to the 12 months included in F2024.
For more detail and a table showing the mark-to-market adjustments at Two Rivers and Modikwa mines, see below.
Nkomati Mine reported an attributable headline loss of R391 million (F2023: R210 million). This was driven mainly by an increase in the provision for rehabilitation in F2024 due to higher water management costs arising from the water treatment plant. The mine was placed on care and maintenance on 15 March 2021. ARM and its joint-venture partner have concluded a purchase and sale agreement.
ARM Coal reported headline earnings of R391 million (F2023: R1 535 million), driven mainly by a reduction in the realised coal price at GGV and PCB of 33% and 36%, respectively.
GGV Mine’s headline earnings were R331 million (F2023: R540 million). PCB headline earnings were R60 million (F2023: R995 million).
See below for a detailed analysis of the GGV and PCB operational profit performance.
ARM Corporate and Other (including Gold) reported headline earnings of R762 million (F2023: R651 million restated). Included in ARM Corporate and Other are dividends received from Harmony of R166 million (F2023: R17 million).
Machadodorp Works headline loss of R221 million (F2023: R196 million) related to research on developing energy-efficient smelting technology.
Basic earnings of R3 146 million (F2023: R8 080 million restated) included attributable impairments as follows:
Refer to note 4 of the condensed group financial statements for further details on these impairments.
At 30 June 2024, ARM had net cash of R7 197 million (30 June 2023: R9 779 million), a decrease of R2 582 million compared to the end of the 2023 financial year, largely driven by an increase in borrowings of R887 million. This amount excludes attributable cash and cash equivalents held at ARM Ferrous (50% of Assmang) of R4 476 million (30 June 2023: R4 939 million).
| F2024 Rm |
F2023 Rm |
|
| Assmang | 5 000 | 5 000 |
|---|---|---|
| Participative Coal Business (PCB) | 422 | 598 |
| Two Rivers Mine | – | 486 |
| Harmony Gold | 166 | 17 |
| Total dividends received | 5 588 | 6 101 |
Cash generated from operations decreased by R6 319 million to R1 771 million (F2023: R8 090 million) after an outflow in working capital of R130 million (F2023: R1 212 million inflow). This was mainly due to an outflow in trade payables and reduction in receivables inflow.
In F2024, ARM paid R3 529 million in dividends to its shareholders, representing the interim dividend of R6.00 and final dividend of R12.00 per share declared for F2023 (F2023: R6 666 million representing the interim dividend of R14.00 and F2022 final dividend of R20.00 per share).
Net cash outflow from investing activities was R6 556 million (F2023: R7 511 million) and included R4 742 million additions to property, plant and equipment to expand operations. Of this, R3 138 million was attributable to the Merensky project.
Borrowings of R62 million (F2023: R251 million) were repaid and borrowings of R935 million raised during the period, resulting in gross debt of R1 129 million at 30 June 2024 (30 June 2023: R242 million).
ARM acquired 15% of Surge Copper Corp (Surge) on 31 May 2024. Surge is a Canadian company that is advancing an emerging critical metals district in a well-developed region of British Columbia, Canada. The company owns a large, contiguous mineral-claim package that hosts multiple advanced porphyry deposits with pit-constrained NI 43-101-compliant resources of copper, molybdenum, gold and silver – metals that are critical inputs to the low-carbon energy transition and associated electrification technologies.
Surge owns a 100% interest in the Berg project, which is in the north-western portion of the company’s 100%-owned 125 499-hectare contiguous land package in the Berg-Huckleberry-Ootsa district. Surge announced an NI 43-101-compliant maiden preliminary economic assessment (PEA) and an accompanying Mineral Resource estimate on the Berg project in June 2023, outlining a large-scale, long-life project with a simple design and high outputs of critical minerals located in a safe jurisdiction near world-class infrastructure. The Berg deposit contains pit-constrained NI 43-101-compliant resources of copper, molybdenum, silver and gold in the Measured, Indicated and Inferred categories.
The company also owns a 100% interest in the Ootsa property, an advanced-stage exploration project containing the Seel and Ox porphyry deposits adjacent to the open-pit Huckleberry Copper Mine, owned by Imperial Metals. The Ootsa property contains pit-constrained NI 43-101-compliant resources of copper, gold, molybdenum and silver in the Measured, Indicated and Inferred categories.
The current priority is to conserve cash while ramping up production in a phased and measured manner, given depressed commodity prices. This approach will maximise the use of Bokoni’s existing surface and concentrator plant infrastructure, reducing capital costs. Subsequent to year end, the construction of a chrome recovery plant was approved by the board. We remain confident of the long-term profitability of Bokoni.
We continued to invest in our existing operations with segmental capital expenditure of R8 564 million for the period (F2023: R7 201 million). The increase in capital expenditure was mainly due to the Merensky project at Two Rivers Mine. Capital expenditure for the divisions is shown below and discussed in each division’s operational performance section.
| F2024 Rm |
F2023 Rm |
% change | |
| ARM Ferrous | 2 209 | 2 440 | (9) |
|---|---|---|---|
| Iron ore division | 1 607 | 1 707 | (6) |
| Manganese division | 697 | 841 | (17) |
| Consolidation adjustment | (95) | (108) | (12) |
| ARM Platinum | 6 139 | 4 420 | 39 |
| Two Rivers Mine | 3 968 | 3 167 | 25 |
| Modikwa Mine | 417 | 561 | (26) |
| Bokoni Mine | 1 754 | 692 | 153 |
| ARM Coal (Goedgevonden Mine only) | 202 | 331 | (39) |
| ARM Corporate | 14 | 10 | 40 |
| Total | 8 564 | 7 201 | 19 |
Average realised US dollar export iron ore prices were 4% higher on a free-on-board (FOB) equivalent basis at US$109 per tonne (F2023: US$105 per tonne).
Movements in iron ore prices resulted in the following mark-to-market adjustments:
| F2024 Rm |
F2023 Rm |
|
| Fair value adjustments during the year (realised) | (606) | (828) |
|---|---|---|
| Revenue – fair value adjustments current period | (740) | (456) |
| Revenue – fair value adjustments previous period | 134 | (372) |
| Fair value adjustments at interim (unrealised) | (44) | (557) |
| Based on confirmed prices | 57 | (368) |
| Based on forward prices | (101) | (189) |
| Total revenue – fair value adjustments | (650) | (1 385) |
| Realised fair value adjustments for the period | (606) | (828) |
| Unrealised fair value adjustments for the period | (44) | (557) |
Total iron ore sales volumes increased by 4% to 14.7 million tonnes (F2023: 14.2 million tonnes). Export sales volumes were 2% higher at 12.2 million tonnes (F2023: 12.0 million tonnes).
Local sales volumes increased 11% to 2.4 million tonnes (F2023: 2.2 million tonnes), driven by higher offtake from a local customer.
The lump-to-fines ratio decreased from 56:44 in F2023 to 57:43 in F2024.
Total iron ore production volumes increased by 2% to 14.1 million tonnes (F2023: 13.9 million tonnes). F2023 production volumes were lower due to logistical challenges and full stockpiles as previously reported.
Water supply to the Northern Cape mines remains a risk. The supplemental supply of water from a neighbouring mine’s stormwater was depleted in May 2023. This, together with the inability to get sufficient water from the VCWB, impacted Khumani Mine. Management made further arrangements and supplemented Khumani’s water requirement from on-mine boreholes and made more sustainable arrangements with the neighbouring mine. Since January 2024, Khumani has had no production losses due to water shortages. This arrangement is working well, but is not sustainable. The long-term solution is the urgent start of phase 2 of refurbishing the Vaal Gamagara pipeline, which is being addressed as a key priority between the Department of Water and Sanitation and the Northern Cape mines.
On-mine production unit costs for the iron ore division increased by 10% to R400 per tonne (F2023: R364 per tonne). This was mainly due to inflation-related cost escalations and a higher increase in cash costs combined with more waste-stripping tonnes expensed and less waste-stripping tonnes capitalised.
Unit cash costs per tonne for the iron ore division increased by 5% to R507 per tonne (F2023: R482 per tonne) due to inflation, higher mining expenses due to higher stripping ratio, and higher plant expenses. This was partially offset by higher production volumes and lower diesel and explosive prices.
On-mine unit production costs at Khumani Mine increased 11% to R383 per tonne (F2023: R344 per tonne) while on-mine unit cash costs (which exclude run-of-mine ore stock movements and include capitalised waste-stripping costs and certain non-cash adjustments) were 6% higher at R485 per tonne (F2023: R455 per tonne). The increase was mainly due to inflation-related cost escalations, higher stripping ratio and lower capital waste tonnes, partially offset by higher production volumes and lower diesel and explosive prices.
On-mine unit production costs at Beeshoek Mine increased 5% mainly due to inflation, lower mining cash costs, and a lower work-in-progress adjustment due to lower dump levels.
Beeshoek Mine’s unit cash costs are in line with the prior year. Inflationary increases on costs were offset by a 3% increase in production volumes and lower diesel and explosives prices.
Unit cost of sales for the iron ore division, which include marketing and distribution costs, were 7% higher, mainly due to higher on-mine production costs and increased railage costs. Sales and marketing costs, which are determined based on free-on-board revenue, were higher owing to higher US dollar iron ore prices realised in F2024.
Capital expenditure (100% basis) was R3 215 million (F2023: R3 414 million), which includes capitalised waste-stripping costs of R1 335 million (F2023: R1 361 million).
Khumani Mine’s capital expenditure (100% basis) decreased by 5% to R2 573 million (F2023: R2 711 million), mainly because of lower stay-in-business capital and less waste-stripping tonnes capitalised.
Beeshoek Mine’s capital expenditure (100% basis) decreased 9% to R642 million (F2023: R703 million), mainly due to decreased capitalised waste-stripping costs of R393 million (F2023: R410 million) and lower stay-in-business capital.
| unit | F2024 | F2023 | % change | ||
| Prices | |||||
| Average realised export price* | US$/t | 109 | 105 | 4 | |
| Volumes | |||||
| Export sales | 000t | 12 241 | 11 966 | 2 | |
| Local sales | 000t | 2 482 | 2 244 | 11 | |
| Total sales | 000t | 14 722 | 14 210 | 4 | |
| Production | 000t | 14 146 | 13 886 | 2 | |
| Export sales lump/fines split | % | 57:43 | 56:44 | ||
| Export sales CIF/FOB** split | % | 47:53 | 56:44 | ||
| Unit costs | |||||
| Change in on-mine unit production costs | % | 5 | 28 | ||
| Change in unit cost of sales | % | 7 | 9 | ||
| Capital expenditure | R million | 3 215 | 3 414 | (6) |
* Average realised export iron ore prices on an FOB equivalent basis.
** CIF – cost, insurance and freight; FOB – free-on-board.
| F2024 Rm |
F2023 Rm |
% change | |
| Sales | 5 874 | 6 487 | (9) |
|---|---|---|---|
| Operating profit | 372 | 1 362 | (73) |
| Contribution to headline earnings | 246 | 1 065 | (77) |
| Capital expenditure | 684 | 809 | (15) |
| Depreciation | 552 | 487 | 13 |
| EBITDA | 924 | 1 849 | (50) |
In F2024, index prices for high-grade ore changed from a 44% index to a 43.5% index, while the low-grade index changed from 37% to 36.5%. Together with the increase in prices in May 2024 driven by typhoon damage at Groote Eylandt Mining Company (GEMCO), the average US dollar price for high-grade manganese ore (43.5%) decreased 5% year on year, while low-grade manganese ore (36.5%) decreased 1% year on year.
Manganese ore sales volumes in F2024 increased by 2% to 4.4 million tonnes (F2023: 4.3 million tonnes). Export sales volumes rose 3% to 3.7 million tonnes (F2023: 3.6 million tonnes) due to the rollover of shipments from F2023 and local sales volumes that were higher at 0.75 million tonnes (F2023: 0.73 million tonnes).
Production volumes at Black Rock Mine decreased 15% to 3.6 million tonnes (F2023: 4.3 million tonnes) due to operational challenges at Nchwaning 3, exacerbated by a decision to stop producing unprofitable ore, in turn affecting the development and opening of new, more profitable mining areas. The recovery plan was successfully executed but resulted in production delays until the end of March 2024. Ramp-up to the required full production run-rate was only achieved in June 2024.
On-mine unit production costs at Black Rock Mine rose to R857 per tonne from R732 per tonne in F2023. On-mine unit cash costs increased to R879 per tonne in F2024 due to inflation and lower production volumes, resulting in an adverse effect on fixed-cost dilution combined with an increase in power costs.
Unit cost of sales (which include marketing and distribution costs) increased 6% due to higher production costs and the increase in inland logistics, offset by lower marketing expenses driven by lower manganese ore prices and lower freight rates.
Total capital expenditure for the manganese ore operations was R1 368 million on a 100% basis (F2023: R1 618 million). Capital expenditure is lower due to projects that were postponed given market conditions and low pricing during the first nine months of F2024.
The Gloria project was formally closed out in February 2024. The final project cost was R2.95 billion against an approved plan of R2.97 billion. The project realised an LTIFR of 0.26 with 0.5 million fatality-free shifts.
The Black Rock Mining Operation rail siding and Gamagara bridge have been completed. The final switchover from the old to the new line was delayed by the rail shutdown and has been moved from April 2024 to October 2024. The project is forecast to be completed in December 2024, within the revised approved budget of R480 million. The project has had no lost time injuries and no fatalities.
| unit | F2024 | F2023 | % change | ||
| Volumes | |||||
| Export sales | 000t | 3 684 | 3 589 | 3 | |
| Domestic sales* | 000t | 748 | 735 | 2 | |
| Total sales* | 000t | 4 432 | 4 325 | 2 | |
| Production | 000t | 3 622 | 4 272 | (15) | |
| Unit costs | |||||
| Change in cash costs | % | 20 | 5 | ||
| Change in unit cost of sales | % | 6 | (4) | ||
| Capital expenditure | R million | 1 368 | 1 618 | (15) |
* Excluding intra-group sales of 184 000 tonnes sold to Cato Ridge Works (F2023: 195 000 tonnes).
| F2024 Rm |
F2023 Rm |
% change | |
| Sales | 862 | 1 158 | (26) |
|---|---|---|---|
| Operating profit | (188) | 200 | (194) |
| Contribution to headline earnings | (103) | 307 | (133) |
| Capital expenditure | 13 | 32 | (59) |
| Depreciation | – | 5 | (100) |
| EBITDA | (188) | 204 | (192) |
The F2024 average US dollar index price for high-carbon ferromanganese and medium-carbon ferromanganese decreased by 28% compared to the average price of F2023.
High-carbon ferromanganese production at Sakura (100% basis) decreased to 230 000 tonnes (F2023: 253 000 tonnes). High-carbon ferromanganese sales (100% basis) declined 5% to 226 000 tonnes (F2023: 237 000 tonnes). Lower production and sales volumes in F2024 reflect decreased demand.
High-carbon ferromanganese production at Cato Ridge Works decreased by 13% to 101 000 tonnes (F2023: 116 000 tonnes), mainly due to holding back production because of soft market demand in F2024.
For the same reason, medium-carbon ferromanganese production at Cato Ridge Alloys (100% basis) declined 10% to 51 000 tonnes (F2023: 56 000 tonnes).
High-carbon ferromanganese sales at Cato Ridge Works decreased 28% to 31 000 tonnes (F2023: 43 000 tonnes), impacted by lower production and a decrease in demand. Medium-carbon ferromanganese sales at Cato Ridge Alloys (100% basis) decreased by 8% to 50 000 tonnes (F2023: 54 000 tonnes), impacted by lower market demand in F2024.
Unit cash costs at Sakura decreased by 12% in F2024. The significant drop is mainly due to a 23% decrease in ore prices and a 25% decrease in reductant prices, offset by lower production volumes and inflationary increases in other conversion costs.
Unit cash costs at Cato Ridge Works rose 11% in F2024. The significant increase is mainly due to a 13% reduction in production volumes, above-inflation increases in power costs and the cost of ore from Black Rock Mine, plus inflationary increases in other raw material prices.
Medium-carbon ferromanganese unit cash costs at Cato Ridge Alloys decreased by 1% in F2024.
Capital expenditure at Cato Ridge Works decreased by 60% to R26 million (F2023: R65 million).
| unit | F2024 | F2023 | % change | ||
| Volumes | |||||
| Cato Ridge Works sales* | 000t | 31 | 43 | (28) | |
| Cato Ridge Alloys sales | 000t | 50 | 54 | (8) | |
| Sakura sales | 000t | 226 | 237 | (5) | |
| Cato Ridge Works production | 000t | 101 | 116 | (13) | |
| Cato Ridge Alloys production | 000t | 51 | 56 | (10) | |
| Sakura production | 000t | 230 | 253 | (9) | |
| Unit costs – Cato Ridge Works | |||||
| Change in unit cash costs | % | 11 | 15 | ||
| Change in unit cost of sales | % | 8 | 13 | ||
| Unit costs – Cato Ridge Alloys | |||||
| Change in unit cash costs | % | (1) | (6) | ||
| Change in unit cost of sales | % | (3) | 9 | ||
| Unit costs – Sakura | |||||
| Change in unit cash costs | % | (12) | 6 | ||
| Change in unit cost of sales | % | (14) | 10 |
* Excluding intra-group sales of 61 000 tonnes sold to Cato Ridge Alloys (F2023: 68 000 tonnes).
The ARM Ferrous operations, held through its 50% investment in Assmang Proprietary Limited (Assmang), comprise the iron ore and manganese divisions. Assore South Africa Proprietary Limited (Assore), ARM’s partner in Assmang, owns the remaining 50%.
US dollar PGM prices were lower compared to prices achieved in F2023, particularly palladium and rhodium, which were down 39% and 61%, respectively. The average rand per 6E kilogramme basket price for Modikwa and Two Rivers mines declined by 35% and 33% to R771 434 (F2023: R1 183 603/kg) and R765 977 (F2023: R1 136 405/kg), respectively.
| unit | F2024 | F2023 | % change | ||
| Platinum | US$/oz | 934 | 970 | (4) | |
|---|---|---|---|---|---|
| Palladium | US$/oz | 1 072 | 1 758 | (39) | |
| Rhodium | US$/oz | 4 186 | 10 811 | (61) | |
| Nickel | US$/t | 18 133 | 23 957 | (24) | |
| Copper | US$/t | 8 679 | 8 289 | 5 | |
| Cobalt | US$/lb | 14 | 20 | (30) | |
| UG2 chrome concentrate – Two Rivers (CIF*) | US$/t | 278 | 236 | 18 | |
| UG2 chrome concentrate – Modikwa (CIF*) | US$/t | 295 | 260 | 13 |
* CIF – cost, insurance and freight.
| unit | F2024 | F2023 | % change | ||
| Average exchange rate | ZAR/US$ | 18.70 | 17.76 | 5 | |
|---|---|---|---|---|---|
| Platinum | ZAR/oz | 17 464 | 17 230 | 1 | |
| Palladium | ZAR/oz | 20 049 | 31 227 | (36) | |
| Rhodium | ZAR/oz | 78 276 | 192 050 | (59) | |
| Nickel | ZAR/t | 339 059 | 425 570 | (20) | |
| Copper | ZAR/t | 162 285 | 147 247 | 10 | |
| Cobalt | ZAR/lb | 253 | 350 | (28) | |
| UG2 chrome concentrate – Two Rivers (CIF*) | ZAR/t | 5 203 | 4 185 | 24 | |
| UG2 chrome concentrate – Modikwa (CIF*) | ZAR/t | 5 513 | 4 619 | 19 |
* CIF – cost, insurance and freight.
Two Rivers, Modikwa and Bokoni mines recognise revenue using provisional pricing. The sales price of the concentrate is determined on a provisional basis at the date of sale, with adjustments made to the sales price based on movements in the discounted forward commodity prices up to the date of final pricing. Post-refining and delivery, adjustments are made to reflect final pricing.
Any differences between provisional and final commodity prices after the reporting period result in the next reporting period’s earnings being impacted by mark-to-market adjustments.
The sharp decline in palladium and rhodium prices in the first half of F2024 resulted in realised negative mark-to-market adjustments from the date of provisional recognition to final price realisation as shown in the tables below.
Revenue related to open sales at 30 June at Two Rivers, Modikwa and Bokoni mines was initially recognised using provisional prices and subsequently revalued at 30 June in the tables below.
| F2024 Rm |
F2023 Rm |
|
| Realised mark-to-market adjustments | (165) | (696) |
|---|---|---|
| Provisional sales value | 6 442 | 10 313 |
| Final sales value | 6 277 | 9 617 |
| Unrealised mark-to-market adjustments | (28) | (369) |
| Initial provisional sales recognition | 787 | 1 260 |
| Period-end provisional sales recognition | 759 | 891 |
| Total mark-to-market adjustments | (193) | (1 065) |
| F2024 Rm |
F2023 Rm |
|
| Realised mark-to-market adjustments | (7) | (135) |
|---|---|---|
| Provisional sales value | 2 769 | 4 392 |
| Final sales value | 2 762 | 4 258 |
| Unrealised mark-to-market adjustments | (12) | (118) |
| Initial provisional sales recognition | 670 | 815 |
| Period-end provisional sales recognition | 658 | 697 |
| Total mark-to-market adjustments | (19) | (253) |
| F2024 Rm |
F2023 Rm |
|
| Realised mark-to-market adjustments | 15 | – |
|---|---|---|
| Provisional sales value | 327 | – |
| Final sales value | 342 | – |
| Unrealised mark-to-market adjustments | (6) | – |
| Initial provisional sales recognition | 215 | – |
| Period-end provisional sales recognition | 209 | – |
| Total mark-to-market adjustments | 9 | – |
Tonnes milled were 1% lower compared to F2023. The UG2 mined volumes were reduced due to negotiating of the dykes restricting face flexibility and Merensky ore was milled to fill the UG2 plant. The UG2 grade remains constrained due to the splitreef (as was reported previously) at 3.14g/t while the Merensky grade was lower at 2.1g/t as the operation was developing to open more ground. PGM production volumes declined by 1% to 291 408 6E PGM ounces (F2023: 295 441 6E PGM ounces). Following accelerated development of the UG2 declines, mining flexibility is expected to improve.
Two Rivers Mine unit cash costs increased by 16% to R1 282 per tonne milled (F2023: R1 105 per tonne). The rand per 6E PGM ounce cash cost increased by 17% to R15 589 per ounce (F2023: R13 376 per ounce). Unit costs were negatively impacted by increased milling of Merensky ore which, due to the development phase of the Merensky shaft, came at a higher cost than UG2 ore.
Of the R3 968 million spent at Two Rivers Mine, R3 138 million (79%) was attributable to the Merensky project. Deepening declines at Main and North shafts, along with electrical and mechanical installations, amounted to R536 million (14%).
Two Rivers’ shareholders approved the Two Rivers Merensky project to mine the Merensky reef with a production capacity of 200 000 tonnes per month. Total estimated capital expenditure for the project was R7.3 billion (100% basis). To date, capital of R6.2 billion has been spent.
A decision was made to place the project on care and maintenance from July 2024, driven by current depressed commodity prices in the PGM market. The Merensky concentrator plant construction and the first two mining levels have been completed.
Total estimated capital expenditure for the project at stoppage was adjusted down to R6.8 billion.
Long-term prospects for the Merensky project remain robust and accretive to Two Rivers Mine and is planned to produce PGMs at competitive costs.
| unit | F2024 | F2023 | % change | ||
| Cash operating profit | R million | 1 147 | 3 774 | (70) | |
|---|---|---|---|---|---|
| – PGMs | R million | 797 | 3 432 | (77) | |
| – Chrome | R million | 350 | 342 | 3 | |
| Tonnes milled | Mt | 3.54 | 3.58 | (1) | |
| Head grade | g/t 6E | 3.01 | 3.00 | – | |
| PGMs in concentrate | Ounces 6E | 291 408 | 295 441 | (1) | |
| Chrome in concentrate sold | Tonnes | 147 904 | 190 165 | (22) | |
| Average basket price | ZAR/kg 6E | 765 977 | 1 136 405 | (33) | |
| Average basket price | US$/oz 6E | 1 274 | 1 990 | (36) | |
| Cash operating margin | % | 18 | 46 | ||
| Cash cost | ZAR/kg 6E | 501 201 | 430 046 | 17 | |
| Cash cost | R/tonne | 1 282 | 1 105 | 16 | |
| Cash cost | ZAR/Pt oz | 33 007 | 28 673 | 15 | |
| Cash cost | ZAR/oz 6E | 15 589 | 13 376 | 17 | |
| Cash cost | US$/oz 6E | 834 | 753 | 11 |
Tonnes milled decreased 4%. The grade, however, increased by 6% due to increased off-reef development, resulting in a 1% improvement in production volumes to 289 751 6E PGM ounces (F2023: 285 910 6E PGM ounces).
Unit cash costs were up 6% to R18 837 per 6E PGM ounce (F2023: R17 728 per 6E PGM ounce) and 12% higher on a rand/tonne basis at R2 270 (F2023: R2 021), owing to the 4% reduction in tonnes milled.
Capital expenditure at Modikwa Mine (100% basis) reduced by 26% to R834 million (F2023: R1 122 million). Of this, R194 million (23%) related to fleet refurbishment and critical spares, R137 million (16%) to capital development, and R59 million (7%) to installing a proximity detection system for the mining fleet. An additional R62 million related to the replacement of conveyor belts.
The downcast ventilation project was initiated to provide additional ventilation for mining levels below 10. The projected completion date has moved out from Q3 F2025 to Q1 F2026 due to unstable ground conditions encountered during the piloting process. The delay will not impact the shaft production ramp-up. The pilot drilling programme is due for completion in Q2 F2025.
The underground-to-surface conveyor belt that connects South 2 infrastructure to South 1 shaft is 62% complete. Due to operational complexities and site preparation delays, the current forecast completion date is Q4 F2025.
The Merensky trial mining project is progressing well and producing an average of 50 000 tonnes per month.
| unit | F2024 | F2023 | % change | ||
| Cash operating profit | R million | 178 | 2 836 | (94) | |
|---|---|---|---|---|---|
| – PGMs | R million | 32 | 2 664 | (99) | |
| – Chrome | R million | 147 | 172 | (15) | |
| Tonnes milled | Mt | 2.40 | 2.51 | (4) | |
| Head grade | g/t 6E | 4.46 | 4.20 | 6 | |
| PGMs in concentrate | Ounces 6E | 289 751 | 285 910 | 1 | |
| Chrome in concentrate sold | Tonnes | 85 575 | 99 476 | (14) | |
| Average basket price | ZAR/kg 6E | 771 434 | 1 183 603 | (35) | |
| Average basket price | US$/oz 6E | 1 283 | 2 072 | (38) | |
| Cash operating margin | % | 3 | 36 | ||
| Cash cost | ZAR/kg 6E | 605 613 | 569 974 | 6 | |
| Cash cost | ZAR/tonne | 2 270 | 2 021 | 12 | |
| Cash cost | ZAR/Pt oz | 45 609 | 43 887 | 4 | |
| Cash cost | ZAR/oz 6E | 18 837 | 17 728 | 6 | |
| Cash cost | US$/oz 6E | 1 007 | 998 | 1 |
The current priority is to conserve cash while ramping up production in a phased and measured manner, given depressed commodity prices. This approach will maximise the use of Bokoni’s existing surface and concentrator plant infrastructure, reducing capital costs. Subsequent to year end, the construction of a chrome recovery plant was approved by the board.
Of the R1 754 million spent at Bokoni (100% basis), R460 million related to the early-ounce project. A further R768 million related to mine development, R148 million was spent on the Klipgat portal development, and R34 million on the definitive feasibility study.
| unit | F2024 | F2023 | % change | ||
| Cash operating loss | R million | (169) | (342) | (51) | |
|---|---|---|---|---|---|
| Tonnes milled | Mt | 0.33 | – | – | |
| Head grade | g/t 6E | 3.82 | – | – | |
| PGMs in concentrate | 6E oz | 28 199 | – | – | |
| Average basket price | ZAR/kg 6E | 786 673 | – | – | |
| Average basket price | US$/oz 6E | 1 309 | – | – | |
| Cash operating margin | % | (31) | |||
| Cash cost | ZAR/kg 6E | 835 179 | – | – | |
| Cash cost | ZAR/tonne | 2 243 | – | – | |
| Cash cost | ZAR/Pt oz | 69 160 | – | – | |
| Cash cost | ZAR/oz 6E | 25 977 | – | – | |
| Cash cost | US$/oz 6E | 1 389 | – | – |
Nkomati Mine has been on care and maintenance since F2021.
ARM and Norilsk Nickel Africa Proprietary Limited concluded a sale agreement that provides for the acquisition by ARM of Norilsk Nickel Africa’s 50% participation interest in Nkomati Mine for cash of R1 million (the Transaction). The transaction is subject to certain conditions precedent, with the main outstanding condition precedent being official consent in terms of section 11 of the Mineral and Petroleum Resources Development Act 28 2002.
At 30 June 2024, the estimated undiscounted rehabilitation costs attributable to ARM were determined to be R1 191 million (30 June 2023: R932 million) excluding VAT. The increase in the undiscounted liability of R259 million is attributed mainly to the provision for short to medium-term water management costs.
The discounted rehabilitation costs attributable to ARM were determined to be R1 119 million (30 June 2023: R802 million).
At 30 June 2024, R137 million (attributable to ARM) in cash and financial assets was available to fund rehabilitation obligations for Nkomati Mine. The resulting attributable shortfall in discounted rehabilitation costs of R982 million is expected to be funded by ARM.
Nkomati Mine’s estimated rehabilitation costs continue to be reassessed as engineering designs evolve and new information becomes available. Refer to note 22 in the condensed group financial statements.
Coal prices in F2024 normalised to levels prior to the Russia-Ukraine war as gas prices have declined and trade patterns have mostly normalised.
Coal demand increased in both India and Vietnam in F2024 due to strong electricity demand and low hydropower output. Growth in India’s economy is increasing industrial coal consumption. In the US, the power generation switching away from coal reduced in 2H F2024 compared to prior periods, favouring demand for coal.
There has been a slight decline in global coal production in 2H F2024, driven mostly by China recording intensified safety complaints at its coal mining operations.
Some 68% of export volumes at Goedgevonden Mine comprised high-quality coal, while PCB’s exports of high-quality coal totalled 72%.
| F2024 Rm |
F2023 Rm |
% change | |
| Cash operating profit | 680 | 1 220 | (44) |
|---|---|---|---|
| Amortisation and depreciation | (199) | (187) | (7) |
| Imputed interest* | 6 | (73) | – |
| Profit on sale of assets | 1 | 2 | 64 |
| Loan re-measurement and fair value losses | (20) | (13) | (54) |
| Profit before taxation | 468 | 949 | (51) |
| Add: Profit on sale of assets | (1) | (2) | (64) |
| Less: Taxation | (136) | (407) | (67) |
| Headline earnings attributable to ARM | 331 | 540 | (39) |
* Post-restructuring the ARM Coal loans, all interest expense on partner loans is imputed.
Total sales volumes increased by 11% as GGV reduced the impact of logistics underperformance by trucking coal to other ports in 1H F2024. Due to the decrease in the commodity price, trucking to other ports was halted in 2H F2024. ARM attributable saleable production increased by 8% to 1.87 million tonnes (F2023: 1.72 million tonnes).
On-mine unit production costs per saleable tonne decreased by 4% to R555 per tonne (F2023: R580 per tonne) as a result of increased production and cost-saving initiatives.
| unit | F2024 | F2023 | % change | ||
| Total production and sales (100% basis) | |||||
| Saleable production | Mt | 7.18 | 6.63 | 8 | |
| Export thermal coal sales | Mt | 4.15 | 3.93 | 6 | |
| Domestic thermal coal sales | Mt | 3.14 | 2.65 | 19 | |
| ARM attributable production and sales | |||||
| Saleable production | Mt | 1.87 | 1.72 | 8 | |
| Export thermal coal sales | Mt | 1.08 | 1.02 | 6 | |
| Domestic thermal coal sales | Mt | 0.82 | 0.69 | 19 | |
| Average received coal price | |||||
| Export (FOB)* | US$/t | 88.65 | 131.49 | (33) | |
| Domestic (FOT)** | ZAR/t | 402 | 416 | (3) | |
| Unit costs | |||||
| On-mine saleable cost | ZAR/t | 555 | 580 | (4) | |
| Capital expenditure | R million | 777 | 1 273 | (39) |
* FOB – free-on-board.
** FOT – free-on-truck.
| R million | F2024 Rm |
F2023 Rm |
% change |
| Cash operating profit | 688 | 2 041 | (66) |
|---|---|---|---|
| Amortisation and depreciation | (606) | (657) | (8) |
| Profit/(loss) on sale of assets | – | 16 | (100) |
| Profit before taxation | 82 | 1 400 | (94) |
| Add: Profit on sale of assets/impairment reversal | – | (16) | (100) |
| Less: Taxation | (22) | (389) | (94) |
| Headline earnings attributable to ARM | 60 | 995 | (94) |
Export sales volumes at PCB operations were 6% lower at 8.6 million tonnes (F2023: 9.1 million tonnes). Domestic sales volumes improved by 66% to 1.63 million tonnes (F2023: 0.98 million tonnes) due to increased coal sales to Eskom.
Production at the PCB operations was constrained by logistics challenges. ARM attributable saleable production increased by 3% to 2.07 million tonnes in F2024 (F2023: 2.02 million tonnes).
Unit production costs per saleable tonne decreased to R807 per tonne (F2023: R815 per tonne) as increased production and cost-saving initiatives reduced the impact of inflationary cost increases.
| Unit | F2024 | F2022 | % change | ||
| Total production sales (100% basis) | |||||
| Saleable production | Mt | 10.27 | 10.01 | 3 | |
| Export thermal coal sales | Mt | 8.58 | 9.12 | (6) | |
| Domestic thermal coal sales | Mt | 1.63 | 0.98 | 66 | |
| ARM attributable production and sales | |||||
| Saleable production | Mt | 2.07 | 2.02 | 3 | |
| Export thermal coal sales | Mt | 1.73 | 1.84 | (6) | |
| Domestic thermal coal sales | Mt | 0.33 | 0.20 | 66 | |
| Average received coal price | |||||
| Export (FOB)* | US$/t | 85.09 | 133.34 | (36) | |
| Domestic (FOT)** | ZAR/t | 701 | 810 | (13) | |
| Unit costs | |||||
| On-mine saleable cost | ZAR/t | 807 | 815 | (1) | |
| Capital expenditure | R million | 2 127 | 1 761 | 21 |
* FOB – free-on-board.
** FOT – free-on-truck.
ARM’s economic interest in PCB is 20.2%. PCB consists of two large mining complexes in Mpumalanga.
ARM has a 26% effective interest in the Goedgevonden Mine near Ogies in Mpumalanga.
ARM’s investment in Harmony was positively revalued by R6 630 million in F2024 (F2023: R2 037 million) as the Harmony share price increased by 112% from R79.25 at 30 June 2023 to R168.05 at 30 June 2024. The Harmony investment is therefore reflected on the ARM statement of financial position at R12 548 million (F2023: R5 918 million) based on its share price.
Gains and losses are accounted for, net of deferred capital gains tax, through the statement of comprehensive income. Dividends from Harmony are recognised in the ARM statement of profit or loss on the last day of registration following dividend declaration.
Copper is an important commodity, and ARM is seeking to grow and to acquire copper assets. ARM’s strategic investment in Harmony aligns with ARM’s copper objectives.
Harmony is currently in a strong financial position, with a net cash balance that places them in a favourable position to pursue their growth ambitions.
ARM will continue to consider and evaluate all options relating to its strategic investment in Harmony, with the objective of unlocking and creating value for ARM and its shareholders and stakeholders.
Based on information that has been released by Harmony and is in the public domain, at this stage, the ARM board believes it is in ARM’s best interests to retain its equity interest in Harmony.
Harmony’s results for the year ended 30 June 2024 can be found on its website: www.harmony.co.za.
Global growth remains subdued by historical standards, influenced by persistent core inflation, high borrowing costs, reduced fiscal support, ongoing challenges in the Chinese property and construction sectors, the long-term effects from the pandemic, geopolitical tensions including the Russia-Ukraine and Israel-Gaza conflicts and the increased threat of geo-economic fragmentation.
The global economy has proved resilient, inflation has more recently declined within sight of central bank targets, and risks to the outlook are becoming more balanced with advanced economies likely to achieve their inflation targets sooner than emerging markets. As central banks aim for a smooth economic transition, they must balance inflation concerns with appropriate policy timing. Faster-than-expected inflation declines could prompt central banks to ease policies sooner, aided by increased labour force participation. Medium-term fiscal consolidation is essential to restore fiscal flexibility and support sustainable debt levels, tailored to each country’s circumstances. Advances in artificial intelligence and robust structural reforms could further enhance productivity and economic growth.
The outlook for PGMs presents a mixed scenario of challenges and opportunities. Platinum is expected to record a significant supply shortfall due to reduced shipments and restructuring initiatives. Despite this, automotive demand for platinum is anticipated to remain strong, despite a slight decline. Palladium demand from the automotive sector is projected to decrease, primarily driven by the rise of electric vehicles and increased use of platinum in gasoline autocatalysts. Rhodium is forecast to be in slight deficit, with automotive demand also expected to decline. Overall, the PGM market will be influenced by economic and geopolitical uncertainties, however, easing interest rates and tightening market fundamentals could support prices in the medium to long term.
Chinese steel demand has weakened, leading to declining margins and lower production expectations, although this is partially offset by increased exports. Global crude steel production is expected to remain stable over the medium term, with a gradual decline in Chinese production offset by increased global demand. The Simandou project in Guinea is expected to commence production in late 2026, placing further downward pressure on iron ore prices over the long term. Decarbonisation policies are likely to drive higher premiums for environmentally friendly high-grade iron ore.
Recent spikes in manganese prices, primarily due to supply coming offline at South 32’s GEMCO are expected to stabilise to normal levels over the medium to long term. Thermal coal demand globally is expected to decrease, largely driven by increasing renewable energy generation and lower natural gas prices, placing downward pressure on thermal coal prices over the medium to long term.
Infrastructure challenges, rail and port performance, power reliability and water security remain significant risks for ARM. These issues are likely to continue impacting our export volumes and unit cost of production. The dependence on a single customer at Beeshoek exacerbates these challenges. We are actively working with government bodies and other stakeholders to develop sustainable solutions that will benefit ARM, the mining industry, communities and the broader country.
ARM is dedicated to building resilience by enhancing productivity, implementing cost-saving measures, and efficiently allocating capital. The current challenges posed by the downturn in the PGM market, along with lower iron ore and thermal coal prices, necessitate a focus on preserving cash. Management is committed to responsible capital allocation and will consider postponing capital expenditure where feasible. Equally, ARM remains fully committed to fostering mutually beneficial relationships with all our stakeholders to build a resilient and sustainable business that delivers competitive returns for shareholders.
ARM aims to pay ordinary dividends to shareholders in line with our dividend guiding principles. Dividends are at the discretion of the board of directors, which considers the company’s capital allocation guiding principles and other relevant factors such as financial performance, commodities outlook, investment opportunities, gearing levels as well as solvency and liquidity requirements of the Companies Act.
For F2024, the board approved and declared a final dividend of 900 cents per share (gross) (F2023: 1 200 cents per share). The amount to be paid is approximately R2 022 million.
The dividend declared will be subject to dividend withholding tax. In line with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE Listings Requirements, the following additional information is disclosed:
A gross dividend of 900 cents per ordinary share, being the dividend for the year ended 30 June 2024, has been declared payable on Monday, 7 October 2024 to those shareholders recorded in the books of the company at the close of business on Friday, 4 October 2024. The dividend is declared in the currency of South Africa. Any change in address or dividend instruction applying to this dividend must be received by the company’s transfer secretaries or registrar no later than Friday, 4 October 2024. The last day to trade ordinary shares cum dividend is Tuesday, 1 October 2024. Ordinary shares trade ex-dividend from Wednesday, 2 October 2024. The record date is Friday, 4 October 2024 while the payment date is Monday, 7 October 2024.
No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 2 October 2024 and Friday, 4 October 2024, both dates inclusive, nor may any transfers between registers take place during this period.
There has been no material change to ARM’s Mineral Resources and Mineral Reserves as disclosed in the integrated annual report (IAR) for the financial year ended 30 June 2023, other than depletions due to continued mining activities at the operations, apart from:
A strategic decision was made to ensure the long-term viability of the Two Rivers Platinum Mine as a direct result of current market conditions and sensitivity to the consensus view of the basket price. Therefore, the Merensky project has been placed on care and maintenance. In addition, based on these prices, a reduction in the UG2 life-of-mine (LoM) was also considered. As a result, the Mineral Reserves have decreased.
There is a reduction in the Mineral Reserve at Beeshoek Iron Ore Mine, following a detailed evaluation of the mine plan, and high stripping ratio pits, which have been excluded. This adjustment was made after a detailed analysis of the mine’s achievable operational efficiencies and results demonstrated by the economically mineable Mineral Reserve.
On 24 November 2023, ARM and Norilsk Nickel Africa Proprietary Limited announced that they had signed a sale agreement, which provides for the acquisition by ARM of Norilsk Nickel Africa’s 50% participation interest in the Nkomati Nickel Mine (Nkomati). Nkomati is located some 300km east of Johannesburg in the Mpumalanga province of South Africa. Nkomati has been on care and maintenance since 15 March 2021 after production at the mine ceased. The transaction is subject to certain conditions precedent. Once all the conditions precedent have been fulfilled, including consent in terms of section 11 of the Mineral and Petroleum Resources Development Act 28 2002 and approval from the South African competition authorities in terms of the Competition Act 89 1998, the Mineral Resources and Mineral Reserves of the asset will be reported as 100% attributable to ARM.
An updated Mineral Resources and Mineral Reserves Statement will be issued in our 2024 integrated annual report.
As previously announced on the JSE Stock Exchange News Service (SENS), the following changes to the board took place:
Subsequent to year end, the following changes to the board took place effective from 3 September 2024:
Signed on behalf of the board
PT Motsepe
Executive chairman
VP Tobias
Chief executive officer
Johannesburg
6 September 2024
We have reviewed the accompanying condensed group statement of financial position of African Rainbow Minerals Limited (“the Group”) at 30 June 2024, the condensed group statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial information including summary of material accounting policy information (“the condensed group financial statements”). The directors are responsible for the preparation and fair presentation of these condensed group financial statements in accordance with IAS 34 Interim Financial Reporting, the South African Companies Act and have been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS® Accounting Standards and the Financial Pronouncements as issued by the Financial Reporting Standards Council and SAICA Financial Reporting Guides as issued by the Accounting Practices Committee (collectively “JSE Listings Requirements”). Our responsibility is to express a conclusion on these condensed group financial statements based on our review.
We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of condensed group financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed group financial statements at 30 June 2024 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting, the South African Companies Act and have been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS® Accounting Standards and the Financial Pronouncements as issued by the Financial Reporting Standards Council and SAICA Financial Reporting Guides as issued by the Accounting Practices Committee (collectively “JSE Listings Requirements”).
KPMG Inc.
Registered Auditor
Per Safeera Loonat
Chartered Accountant (SA)
Registered Auditor
Director
6 September 2024
85 Empire Road
Parktown
2193